Padgett Stratemann is now RMSAs San Antonio becomes a bigger player in Texas Business, more national firms are entering this market. A national firm does not start from zero. RMS (http://rsmus.com/) purchased Padgett. This gives the buyer a large client base to start with. Typically the local partners have made a handsome profit on their time at the firm. But seeking to recoup the investment, the buyer typically raises fees knowing some business will be lost. RMS has re located from North Loop 410 to 1604 and 281. Renee Foshee, a tax expert with the firm, is the current SA CPA Society President.

Turner Cleveland PCTerry Cleveland has addressed our students. Two of our graduates are employed with at this firm.

Ridout Barrett CPAsTony Ridout has visited and addressed our students many times. We have placed graduates with Ridout for several years.

Financial Consulting Firms

Aventine Hill Partners, Inc.Beth Hair CEO founded Aventine in San Antonio in 2009. The firm now has offices in Dallas, Austin, San Antonio, and Houston. She formerly was with RGP.

Resource Global ProfessionalsSusan Hough has been to campus and spoken to our students. She is the San Antonio Manager of RGP. RGP and Aventine are not CPA firms. Instead they offer contract specialists for firms needing specific tasks such as compliance or Controllerships.

Accounting Information

Acounting Today This is an independent site for accounting news regarding firms and current issues.

Accounting Certifications

Certified Information Systems Auditor CISANow that everything is literally on the computer and cyber security becomes a prominent issue, I see more and more accounting professionals with this designation. Previously known as the Information Systems and Audit Control Association, it now goes by the acronym ISACA.

Geo Politics

Institute for the Study of WarThe Institute for the Study of War advances an informed understanding of military affairs through reliable research, trusted analysis, and innovative education. We are committed to improving the nation’s ability to execute military operations and respond to emerging threats in order to achieve U.S. strategic objectives. ISW is a non-partisan, non-profit, public policy research organization.

StratforThis Austin, TX based site was begun by an ex Texas State Professor.

Socionomics

September 30, 2008

My take, with a month to go I suspect that the Dem party staged an atempt at a manufactured crisis, designed to make everyone think there is in fact a panic. Sure enough we had one, but not quite like planned. While there is a lot of finger pointing and spin, I suspect that literally those with races that might be lost are quaking in their Johsnon Murphy loafers.

The voters held another Boston Tea Party and threw the Bailout Plan (speaking of rhetoric, who would support a bailout) in the Harbor, fearing a smilar fate, a lot of pols voted against it.

The job of Speaker of the House is to get legislation passed, no point in calling for a vote and then saying it is a lousy bill and by the way all of you do not have to vote for it, bingo, stock market meltdown, and no bill passes, okay so it was underway already but, this may change the makeup of the House, not what the Dems had in mind, four weeks to go, lots of fun.

The market closed up a healthy 457 points above the 50% 10750 line, once again the market looked into the abyss and said no.

There have been many calls for a student business organization. Our thoughts are that initially an umbrella organization covering all the majors in business would offer multiple advantages. First we need a time and place for example, if we bring soneome to campus to speak, we clearly want to make a good impression with lots of attendance.

With that idea in mind, we have an organization meeting scheduled for

thursday, Oct 2 at 4:45 in the Student Center Room on the first floor. See you there!

As usualTom Sowell cuts through the rhetorical clutter. I would add that Greenspan's way too low interest rates and the Bush policy of build build houses added to the mess.

At any rate, we have, surprise, the foreign exchnges pretty much bouncing back to even after an initial sell off last night, I would have thougth they would be down further. Perhaps that is a vote for the idea that we need a better bailout bill?

While no one wants to try to 'catch a falling knife ( the danger of buying a market in panic, where is the bottom) this also illustrates an interesting point. Baron von Rothschild observed that one must buy when there is 'blood in the streets' he meant that literally, revolution brings great values, if of course one picks the winning side...

Are there winners you would like to own in the middle of this panic, SKT, the outlet mall hardly budged yesterday, pipeline stocks are down but above previous lows, the transport ETF IYT has pulled back to support at its 200 day moving average, buy and hold, panic out of positions? Fun fun and a whole four days of trading to go.

This is why we study accounting and finance, we need to understand the language and statements of companies. We also need to understand the psychology of markets which is why I highlight technical analysis and psychologic studies like Elliott Wave and Socionomics.

Socionomics is the idea that events are shaped by human emotions. The best laboratory of those emotions on display is the stockmarket, this week is a case in point. At Dow 14,000 pop culture was happy and buying, today the culture is unhappy and selling.

Words matter, someone on tv just made the point that the word BAILOUT is a negative connotation, cleraly the people are NOT for a bailout.

A bounce back in the markets is expected, though I am buoyed that the foreign markets did not close down last night. I doubt the low is in quite yet but I expect to see at least a near term low this week.

Irony of the Week While eveyrone recoiled at the idea of a $700 B bailout, more than $1.2 trillion exited our markets just yesterday, way to go Congress....

September 29, 2008

94 Democrats joined Republicans in defeating the 'bailout bill.' We have detailed the many problems in the economy here the last few months. Now the perfect storm of investment and commercial bank failures, election rhetoric, natural catastrophes are bringing a financial storm.

What worries me most is the possibility of a credit meltdown. Already banks are reluctant to loan to one another, something that routinely happens every day. What if a major corporation or government could not meet its payroll? Panic would quickly ensue, there would be runs on banks, people coud not or would not pay bills fearing a loss of even more liquidity.

It is imperative that some confidence be restored. Last minute partisan remarks by Nancy Pelosi coupledwith a massive rejection of the plan by folks calling Congress tanked the plan.

This was the biggest one day drop ever in the stock market. All of this is foreshadowing a liquidity crisis. Interesting times indeed.

September 27, 2008

I have published numerous articles concerning the financial train wreck of the Dallas Independent School District. ONe month into the new school year the Superintendent Hinojosa is recommending laying off 1209 employees including 675 teachers. Seems ther is a $84 M budget shortfall. Such finanical mismanagment has been a hallmark of his administration. Last year a credit card scandal involving millions of dollars of wrongful charges went virtually unchecked and unpunished. Now this.

Accounitng is all about proper reporting and internal control procedures. Auditing is a process to make sure such controls are in place and functioning properly. When they do not, this is the sort of thing that happens.

The entire bunch should resign, the Board and the Supt, I suspect the state will step in to at least show the rest of the State that there is some line in the sand that cannot be crossed.

Paul Newman passed from our midst this weekend, a true class act. Newman as married to Joan Woodward, they had several children, he starred in major league movies, and gave over $150 M away through his charities, a life well lived indeed.

Students are aware I am a film buff, check out Cat on a Hot Tin Roof, Cool Hand Luke, Butch Cassidy, The Sting, The Hustler (the original with Jackie Gleason and George Scott in black and white no less, not the Tom Cruise sequel), or Hud. Newman was also a life long car enthusiast and successful racer.

Even our intermed text plainly states that accounting pronouncements are a matter of politics. Here is a look at that process. Ben Franklin said that it was best if the public did not see the sausage maker nor the politician at work, true words.....

September 26, 2008

So exactly who among Paulson's buddies is it that needs all this money?

Where were Dodd and Frank on the financed and Banking committees, recipients of

donations from FNM and FRE as are Barack and McCain

What does Bush and the SEC do all day long anyway, hmm, I just heard Karl Rove say Bush had a bill to prevent all this, first I heard of it!

I understand only 7% of the public supports the bailout

Again, who is being bailed out, looks like the repair work is underway to me...

To his credit, Jim Rogers announced on the Cavuto he had shorted FNM four years ago and that the entire company would eventually blow up, once again, Rogers was right on target, you will note I have recommended several of his books to the class

The President promises a financial collapse if the biggest federal program in history is not immediately enacted.

Having fun yet? The author of the Black Swan argues that improbable events occur with well more frequency than one might think. For centuries it was believed that there was no such thing as a Black Swan, literally. Then one was discovered.

The events of recent times mirror the radical change that is usually associated with revolution or war.

Students have surely noted my fascination with markets, and markets are the reflection of the psychology of the population. The stock market picks up on the longer term feelings in monthly and weekly charts, or even the moment to moment feelings in charts from one to sixty minutes. Real estate holders can kid themselves, this past weekend I saw some houses that have been on the market for months and months with only a high ask price, no bids.l The owners are kidding themselves, this would not be the case in a continuous bid and ask market like the stock market. This is why sooner rather than later all these new unsold homes will no doubt go up for a literal auction, the banks will demand payment as the regulators pressure them to get old loans current.

Perhaps you have seen the video of a large school of fish, encountering a possible danger, a shark for example, the entire school will appear to turn on a dime and go the other way. Did the school of fish all turn at once, or did they follow the lead fish? Believe me, it makes a big difference!

Right now the school of stock market fish sense danger. They have sent prices down to levels that would haver been incredibly attractive just a few months ago, many fine companies now pay dividends of 7-9%, others routinely are paying better than bank interest at say 4%. Yet the psychology of the school of fish has radically changed. The buyers at Dow 14,000 just months ago, now recoil in horror at the chance to buy what they own at a 30% discount or more. Have the fundamentals changes that much?

The psychology of the stock and other investing markets swings from greed to hope to fear, reflecting the socionomic POV I have explained. At Dow 14,000 investors were greedy, like the guys running Lehman. At Dow 12,000 they had hope, that prices would come back. At Dow 10,850 just above the 50% level of the entire move from the post 9/11 low, they are gripped with fear, fear that we fall over that abyss in the movie The Deep, falling helplessly into a dark unknown black hole. Let a solution appear, and greed returns running prices back up. Fear grows on uncertainty, markets abhor uncertainty. Prices went nowhere Wednesday, why, no one is buying or selling, no one knows what will happen. Uncertainty reigns,Congress has managed to stop trading in stocks, real estate, cars, and even at the retail level, check out the chart of Home Depot, Target or any other publicly traded retailer. Way to go guys and gals, no leadership there, no wonder public confidence is at an all time low for Congress.

Now, who Willl be the lead fish? The accounting textbooks routinely tell us that accounting pronouncements are political, everyone wants some outcome and lobbies for it. Today we Will see who assumes the mantle of the lead fish. Obama, McCain and Bush are to meet. Obama has said he is going back on the campaign trail, McCain says he is going back to work. Bush Willl be gone in four months no matter what. This will probably be the most important four or five days in the campaign, who will emerge as the lead fish to bring the school of fish, the stock market, out of danger?

As I write calmer voices like Dave Ramsey are suggesting that there are alternatives to a $700 B bailout, particularly with the same clowns in charge that got us in this mess. The more a plan can be crafted away from this knee jerk reaction, the better. Americans are recoiling horror at the idea all these mistakes would be rescued. Ramsey mentions that auctions, changing tax provisions, changing mark to market rules, could all be used as an alternative to a big bond issuing bailout, let's hope such sanguine thinking prevails.

Stay tuned.

e is this laboratory more on display than in the stock market. The stock market, unlike real estate for example. continually displays bid and ask prices, for everything. So it picks up on the longer term feelings in monthly and weekly charts, or even the moment to moment feelings in charts from one to sixty minutes. Real estate holders can kid themselves, this past weekend I saw some houses that have been on the market for months and months with only a high ask price, no bids.l The owners are kidding themselves, this would not be the case in a continuous bid and ask market like the stock market. This is why sooner rather than later all these new unsold homes will no doubt go up for a literal auction, the banks will demand payment as the regulators pressure them to get old loans current.

Perhaps you have seen the video of a large school of fish, encountering a possible danger, a shark for example, the entire school will appear to turn on a dime and go the other way. Did the school of fish all turn at once, or did they follow the lead fish? Believe me, it makes a big difference!

Right now the school of stock market fish sense danger. They have sent prices down to levels that would haver been incredibly attractive just a few months ago, many fine companies now pay dividends of 7-9%, others routinely are paying better than bank interest at say 4%. Yet the psychology of the school of fish has radically changed. The buyers at Dow 14,000 just months ago, now recoil in horror at the chance to buy what they own at a 30% discount or more. Have the fundamentals changes that much?

The psychology of the stock and other investing markets swings from greed to hope to fear, reflecting the socionomic POV I have explained. At Dow 14,000 investors were greedy, like the guys running Lehman. At Dow 12,000 they had hope, that prices would come back. At Dow 10,850 just above the 50% level of the entire move from the post 9/11 low, they are gripped with fear, fear that we fall over that abyss in the movie The Deep, falling helplessly into a dark unknown black hole. Let a solution appear, and greed returns running prices back up. Fear grows on uncertainty, markets abhor uncertainty. Prices went nowhere Wednesday, why, no one is buying or selling, no one knows what will happen. Uncertainty reigns,Congress has managed to stop trading in stocks, real estate, cars, and even at the retail level, check out the chart of Home Depot, Target or any other publicly traded retailer. Way to go guys and gals, no leadership there, no wonder public confidence is at an all time low for Congress.

Now, who Willl be the lead fish? The accounting textbooks routinely tell us that accounting pronouncements are political, everyone wants some outcome and lobbies for it. Today we Will see who assumes the mantle of the lead fish. Obama, McCain and Bush are to meet. Obama has said he is going back on the campaign trail, McCain says he is going back to work. Bush Willl be gone in four months no matter what. This will probably be the most important four or five days in the campaign, who will emerge as the lead fish to bring the school of fish, the stock market, out of danger?

As I write calmer voices like Dave Ramsey are suggesting that there are alternatives to a $700 B bailout, particularly with the same clowns in charge that got us in this mess. The more a plan can be crafted away from this knee jerk reaction, the better. Americans are recoiling horror at the idea all these mistakes would be rescued. Ramsey mentions that auctions, changing tax provisions, changing mark to market rules, could all be used as an alternative to a big bond issuing bailout, let's hope such sanguine thinking prevails.